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Contraband butts seized -ON,QC, USAMay 5, 2007
By LAURA CZEKAJAn increased police focus targeting the smuggling of contraband cigarettes into Canada from the U.S. at the Cornwall Island crossing is being credited for some major busts in the past week.RCMP Sgt. Michael Harvey said as area police combine their efforts more than ever, the result is more smugglers being caught."The smugglers are very open in doing the act of smuggling," he said. "It's in plain view most of the time of the officers who approach the vehicle and see the cigarettes."STOWED ON BOATSThe most frequent seizures are of cigarettes manufactured in the U.S. and stowed on boats or in vehicles to cross the St. Lawrence River into Cornwall."We do have intelligence that a lot of the money from the illegal sales of these cigarettes is used to purchase drugs and marijuana that will be smuggled back through the same organizations to the U.S., " said Harvey.A joint operation Wednesday night resulted in the arrests of four men and one woman, all from Cornwall, and the seizure of three vehicles and 599,400 contraband cigarettes. The bust was valued at $88,934.It was all in a day's work for the task force, composed of officers from the Central St. Lawrence Valley RCMP detachment, the Quebec provincial police contraband investigative unit and the Canada Border Services Agency.On Tuesday, a 25-year-old Nepean man was arrested in Cornwall after a border intelligence officer spotted a truck carrying 300,000 contraband cigarettes.The 1994 Ford pickup truck was seen at about 4:45 p.m. The officer followed the pickup truck to Third Ave., where he was joined by an RCMP officer.The officers witnessed the driver unload cases of cigarettes into a passenger rental van.The two men fled on foot, but police caught the driver of the van.STASH WORTH $33GSPolice seized 1,500 bags of contraband cigarettes worth an estimated $33,000.A resident of Wolfgang Dr. in Nepean was released by police but faces charges under the Excise Act 2001.Investigators are looking for the other suspect.
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Contraband cigarette haul leads to charges -ONApril 25, 2007A woman from upstate New York has been charged after provincial police seized 100,000 contraband cigarettes following a traffic stop in Green Valley on Monday. Stormont, Dundas and Glengarry OPP said an officer stopped a vehicle for speeding on County Road 34 at about 10:15 p.m. when he discovered the contraband cigarettes. A 51-year-old woman from Massena, New York, has been charged with possessing unmarked tobacco under the Tobacco Tax Act.
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Akwesasne police seize 250,000 cigarettes, cash -ONApril 21, 2007Police seized 250,000 contraband cigarettes and more than $7,000 in cash on Thursday.At about 6:30 a.m., an Akwesasne Mohawk Police Service officer stopped a pickup truck driving along Brookdale Avenue after watching the truck drive around Cornwall Island.Officers identified the driver as a 42-year-old man from Southwold, Ont., and charged him under the Indian Act for trespassing on Akwesasne Mohawk territory.While advising the man of his charges, police said they located several cases of contraband tobacco.There were 250,000 cigarettes allegedly located inside the truck.Officers also seized $7,370 from the driver.The driver faces possible charges under the Excise Act as well as criminal charges, police said on Friday.
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6 teens arrested at Gatineau school for marijuana, cigarettes -QCMarch 16, 2007Police arrested six students aged 13 to 17 at a Gatineau high school Thursday for smoking marijuana and selling contraband cigarettes.The principal of du Versant secondary school on de-la-Cité Boulevard called the Gatineau police school resource officer because he was worried about students smoking marijuana during lunchtime and the effect it would have on their studies, said Gatineau police Lieut. Jean-Paul LeMay.Police observed students at the school, then arrested five for consuming marijuana and one for selling contraband cigarettes."He had that all in one bag — about 400 cigarettes — and he was selling them for 50 cents a unit on school property," LeMay said, adding that the student will be ticketed under Quebec's Tobacco Act. Police seized the cigarettes.LeMay acknowledged that sometimes schools can solve similar problems on their own.Mounties looking for smoke robbers -ABMarch 13, 2007Fort Saskatchewan RCMP are looking for two men suspected of stealing tobacco products from Safeway last Thursday afternoon.RCMP and the Fort Saskatchewan Fire Department both attended the scene after it was discovered that two men, aged 30 to 40-years-old, gained entry into a locked storage area and stole an undetermined amount of tobacco.The two suspects possibly fled in a white crew-cab pick-up truck.One suspect was wearing blue coveralls the other was wearing a tan coloured bomber-style jacket. The first suspect had a moustache while the other is described as tall and slim with eyeglasses.The RCMP forensic identification unit attended the scene and Mounties continue to investigate.Anyone with information on this incident is asked to call the Fort Saskatchewan RCMP detachment at 992-6100 or Crimstoppers at 1-800-222-TIPS (8477).
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Cheap, illegal tobacco gaining ground, Mounties say -NLMarch 14, 2007The trade of contraband tobacco has surged in Newfoundland and Labrador in recent months, with police warning the public not to be tempted by the deep discounts offered by illegal vendors.A contraband 200-gram can of tobacco sells on the street for about $30 — roughly a third of what the legal version costs at retailers."I think that the contraband tobacco is at a high level here in the province right now," said Sgt. Jim Power, who works with the RCMP's customs and excise unit."I don't think it's just a concern for the police. I think it's certainly a concern for the health of people, and it's a concern for the consumers."Last year, the RCMP seized about three times as much illegal tobacco as they did in 2005.For retailers like Patty Chafe, who runs a convenience store in Corner Brook, there is still far too much illegal tobacco on the market, and her tobacco and cigarette sales have been hurting."I have people who come in periodically and ask [whether] I have bags of tobacco underneath the counter," she said."And I kind of chuckle and say to myself, 'I wouldn't be in business very long if I did.'"RCMP say much of the illegal trade in tobacco in Newfoundland and Labrador originates in native reserves in Ontario and Quebec. Police said smuggled materials are distributed across the province.
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Cops stop tobacco rolling for Quebec -ON, QCSat, March 10, 2007By JON WILLING, SUN MEDIAThe bulging tires of a cube truck on Hwy. 401 this week prompted OPP to launch an investigation into what was weighing down the vehicle.When police opened the truck's doors along the side of the highway Tuesday morning in South Glengarry Twp., they found 165 bales of raw-leaf tobacco. The tobacco had a total weight of 3,185 kg.Police said the tobacco, which was being transported in a 2006 Ford Econoline truck, wasn't packaged or properly stamped. RCMP investigators were called to assist with the probe and arrest the driver.EN ROUTE TO RESERVEAccording to police, the truck was transporting the tobacco from the Six Nations Reserve in Brantford to Kahnawake, Que.Sgt. Michael Harvey, of the Central St. Lawrence Valley RCMP, said the bust was unique for area cops, who regularly arrest people for transporting contraband smokes."It's rare," Harvey said. "We don't often see raw leaf."Police plan to take the leaves to a local dump and bury them.A 48-year-old Hagersville man has been charged under the federal Excise Act with possession of raw tobacco not packaged or stamped.SUPPLY ROUTEPolice said the truck is registered to a Brantford rental company. The current price for raw-leaf tobacco by Canadian cigarette manufacturers is $3.56/kg when purchased through the Ontario Flue-Cured Tobacco Growers Marketing Board, police said.Police don't know where these tobacco leaves were purchased.The seizure of raw-leaf tobacco shows there is a supply route between Ontario and Quebec to keep up with the demand for contraband cigarettes, police said.
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Cop dog sniffs out stolen smokes, but no suspects -ONPublished: Saturday, March 10, 2007Windsor StarCezar the police dog was able to sniff out cigarettes stolen from a Seminole Street convenience store Friday morning but the suspects who took them are still at large.Police were called to the store in the 4000 block of Seminole Street at 3:30 a.m. and discovered the front door of the store had been pried open and cigarettes taken.Cezar led his handler to the 1500 block of Tourangeau Road where he discovered a large container filled with cigarettes and a calculator stolen from the store.Anyone with any information is asked to call Windsor police at 519-255-6700 ext. 4830 or Crime Stoppers at 519-258-8477.The incident number is 14883.Operation Cunaxa -QCFebruary 7, 2007$20,000 in Contraband Cigarettes Seized by the RCMPRimouski, – Yesterday, police officers of the Lower St. Lawrence Royal Canadian Mounted Police Detachment and their partners of the Sûreté du Québec, Rimouski Investigations Office and Avignon de Matapédia Detachment, seized contraband cigarettes and arrested two suspects.The investigation was initiated last November after an individual was observed selling unstamped tobacco products at discount prices in Rimouski. Operation Cunaxa was launched by the RCMP and SQ and led to the seizure of 20 cases of unstamped cigarettes worth $20,000. The police also seized a vehicle valued at approximately $20,000.Two subjects were arrested. They will face charges of unlawful possession and sale of cigarettes that were not stamped in accordance with the provisions of the Excise Act 2001. One of the subjects arrested will also be charged with breach of probation.The Royal Canadian Mounted Police invites citizens to report any information on illegal activities by individuals or groups of persons by calling (418) 722-3090. All tips are kept confidential.
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Have cheap smokes, will smuggle through New Brunswick -NBJanuary 12, 2007RCMP say New Brunswick is becoming a drive-through province for tobacco smugglers travelling between Ontario and the Atlantic coast.During the last six months alone, Moncton police have seized and destroyed more 2,700 kilograms of contraband tobacco on provincial highways.RCMP Sgt. Denis Ross says a 53-year-old man from Corner Brook, N.L., was recently fined more than $21,000, after 40,000 cigarettes were discovered in his car during a routine traffic stop near Moncton.Ross has worked with the RCMP's Customs and Excise unit in Moncton for two years. He says during that time, he's seen a large increase in the number of people smuggling tobacco through the province.Ross says there's a lot of tobacco production in the United States near Cornwall, Ont., from where it's transported to Nova Scotia or Newfoundland.Ross says the high price of legal cigarettes is helping drive the smugglers. "A carton of cigarettes, like 200 cigarettes a carton on the legal market, is $80 [in Newfoundland]. Now, in the contraband world they could pay as low as $10 a carton."Ross says police have also busted smugglers in the Moncton area, in Woodstock and in the northern part of the province.He says smugglers aren't always easy to spot, but police do have one advantage. "The fact that the product is so big, that makes it a little bit easier than drugs to find. Obviously, there's no doubt about that."
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Tobacco SmugglingDecember 18, 2006The Carleton-York District 7 RCMP continued their enforcement of contraband tobacco throughout the weekend.As the result of four traffic stops, the members seized over 60 cases of contraband tobacco and arrested four men.A 68 year old man from the Hamilton, Ontario and a 50 year old man from Dartmouth, Nova Scotia were remanded into custody and were to appear in Woodstock Provincial Court today. The two other men were released. The investigation is continuing. (WAGM-TV)
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Kahnawake-bound contraband tobacco seized -QCDecember 2, 2006
Dan RosenburgSeven trailer trucks containing close to 91,200 kilos of Kahnawake-bound contraband tobacco - the equivalent of nearly 456,000 cartons of cigarettes worth close to $11.4 million - were stopped by Revenue Quebec and had their goods confiscated in seven separate raids at Lacolle, St-Armand, Felix Leclerc Autoroute and in Montreal region byways from Nov. 9-16.According to Revenue Québec, Carrie-Ann Phillips of Kahnawake - conducting business under the name of CAP Wholesale - was having the merchandise delivered in Quebec for the purpose of sale or delivery, even though she holds none of the permits required by the law that governs tax on tobacco products.A vast surveillance operation targeting various entry points of tobacco in Quebec led to this series of raids. Revenue Quebec, which has conducted three such operations since September, evaluates the amount of tobacco tax that would have escaped Quebec's fiscal coffers if the products seized had been sold in Quebec either in the form of cigarettes or in bulk, at a whopping $9,383,600.Since the outset of the operation, Revenue Canada has seized 268,410 kilos of tobacco, equivalent to about 1.34 million cartons of cigarettes. If all this tobacco had been transformed into cigarettes to be sold as contraband in Quebec, a total of $27 million in tobacco tax would have been avoided.The operation falls into the context of the ACCES (concerted actions to counter underground economy)program. It was conducted with the essential collaboration of one of its partners, the Canada Customs Service Agency, as well as with the cooperation of the Sureté du Québec and Montreal police.The ACCES program was born in 2001. Besides Revenue Quebec, Canada Customs and various Quebec police forces, it also includes participation of the finance ministry, the health and social service ministry, the Canada Revenue Agency and the RCMP.
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RCMP continue clamping down on illegal smokes -ONNovember 30, 2006Thursday, 8 a.m. In second seizure this week, RCMP nab man with 19 cases of smuggled cigsKINGSTON — A man, believed to be from the Hamilton area, faces charges following the second seizure this week of illicit cigarettes in the region.RCMP say they arrested a man who travelled from Hamilton to Cornwall on Hwy. 401 to buy 19 cases of aboriginal cigarettes to resell in Hamilton. Cpl. Nancy Mason says the driver, who has not been named because he has not yet appeared in court, was pulled over Tuesday night following an investigation by Kingston RCMP.A single carton of 200 cigarettes — which carry no health warnings or tear strip indicating taxes have been paid — sells for $15 or less on reserves but can bring in two times that or more when resold on the street.The driver, who had to forfeit his vehicle, faces fines of up to $1,600 per case of cigarettes. The man is scheduled to appear in court in Brockville on Thursday.On Monday, a 50-year-old Nepean man was busted with 80,000 contraband cigarettes as he travelled through North Stormont. OPP officers intercepted a 1994 Ford Crown Victoria on Hwy. 138, near Hwy. 417, around 2:15 p.m. Monday. After investigating the car, police found boxes of contraband smokes and contacted RCMP. Police seized the contraband and arrested the driver.According to police, there were 400 re-sealable bags of contraband cigarettes in the trunk of the car. Each bag contains 200 cigarettes.The man was charged with unlawful possession of a tobacco product not stamped in accordance with the federal Excise Act.
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Illegal biz smoked out -ONNovember 28, 2006Kingston woman convicted of selling contraband cigsA Kingston business owner has been convicted of selling illegal smokes.Donna Joyner, owner of Earth, Wind and Water Garden, Centre, was charged with two counts under the province's Smoke Free Ontario Act after an investigation this summer.Police seized more than 70,000 illegal cigarettes and an undisclosed amount of cash.Joyner appeared in Kingston Provincial Offences Court and pleaded guilty to the offence of offering to sell illegal cigarettes. After hearing her guilty plea and entering a conviction, the court set her fine at $1,000.00 plus court costs.The investigation resulted in the seizure of 70,750 cigarettes-343 bagged cartons containing 200 cigarettes each, 45 bagged packs containing 25 cigarettes each, and 39 packs of cigarettes labeled with the "CHIEFS" brand. The Court heard that the cigarettes originated from a native reservation, where cigarettes and tobacco products are not taxed.
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Cops crack Native contraband ring -ON, USABy MARK BELLIS, OTTAWA SUN Tue, November 21, 2006CORNWALL -- Police have busted a multi-million-dollar cigarette and dope smuggling ring operating through the Akwesasne Mohawk Reserve, charging 12 people with 115 drug- and smuggling-related crimes."We're being exploited by organized crime" said Akwesasne Mohawk Police Chief Lewis Mitchell, who took part in the raids yesterday along with Canadian and U.S. police.RCMP Insp. Tim Mackin said that the ringleaders of the smuggling gang had invested in an unlicenced cigarette manufacturer on the reserve called MHP Manufacturing, 50 metres from the Canadian border.MHP produced the cigarettes, which were taken over the border by boat and then sold to retailers in Quebec and Ontario and the proceeds used to buy marijuana in Canada to be smuggled into the U.S.Mitchell said the manufacturer was still in operation. Mackin said that although the cigarette plant was illegal, U.S. authorities "lack the will to enforce the law on Native territory."The raids were part of a two-year probe, "Operation Crawler."Police seized 25,000 cartons of cigarettes valued at $550,000, $600,000 in Canadian money, $1,875 in U.S. funds, more than 300 lbs. of marijuana, and 1,000 ecstacy pills, along with firearms, boats, ATVs and snowmobiles.Mackin said raids on the U.S. side netted about $2 million.The RCMP said that William Hank Cook, 31, of Cornwall, and Patrick Johnson, 36, of Akwesasne, N.Y., were the gang's ringleaders. Cook was arrested and charged yesterday. The U.S. attorney's office in Syracuse said Johnson had been arrested.
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Police break up illegal smokes ring -NB, NSNovember 8, 2006Recent raids in New Brunswick and Nova Scotia have broken up an organized crime ring that was smuggling contraband cigarettes from Ontario into the Maritimes, police say.Two men from Chipman, N.B., and one from Fredericton were arrested along with a fourth man from Nova Scotia. A fifth person is being sought.Sgt.Terry Kennedy of the RCMP said 2,400 cartons of illegal cigarettes were seized. He said if those cigarettes had been sold, it would have meant a major loss of tax revenue."[The] 2,400 cartons of cigarettes that were seized represent $42,300 in tax. We need to do what we can to reduce the lost revenue to our governments who are struggling to balance their books to provide universal health care. That's the reality of this."Kennedy said the impact of illegal cigarettes goes beyond lost taxes. He says small store owners who sell tobacco have complained they lose a lot of business because of contraband cigarettes.
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Cig sting hits Cornwall home -ON, NSNovember 9, 2006
By JON WILLING, OTTAWA SUNA Cornwall home was one of five searched during an RCMP investigation into a contraband cigarette ring that stretched from Eastern Ontario to the Maritimes.Federal cops in Fredericton arrested four men, ranging in age from 20 to 84, in connection with the distribution of contraband smokes.Police seized 2,400 cartons of smokes, three vehicles, a quantity of drugs and weapons.Police also swooped down on residences in Waterford, N.S., and the New Brunswick communities of Chipman and Upper Salmon Creek.The RCMP dubbed the 14-month probe Operation Jumble, which was designed to clamp down on the sale and distribution of illegal tobacco originating in the Cornwall area and taken to the Maritimes.Contraband cigarettes result in lost tax revenue for governments. Officials are also growing more concerned that the contraband is being made readily available to children.550,000 SMOKESEarlier this week, the RCMP, OPP, Canadian border officials and Ontario Finance Ministry officials seized 550,000 contraband cigarettes from two vans travelling on Hwy. 401 near Morrisburg. A 53-year-old Scarborough man and a 36-year-old Niagara Falls woman, who was also wanted for theft by Ottawa police, were arrested.Anyone with information about contraband products is asked to call their local RCMP detachment or Crime Stoppers at 1-800-222-TIPS (8477).
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Ontario can’t ignore flood of illegal cigarette sales -ONOct. 23/06Re: Nearly 25 per cent of cigarettes sold in province illegal: survey, Oct. 15.As a convenience-store owner, I feel it my duty to respond to this article. I can wholeheartedly back Imperial Tobacco’s survey with my own statistics. Tobacco sales have been dropping drastically, but all the same people are smoking. Very few have quit. They are just carrying an illegal brand in their pockets and they willingly admit that they have switched to this tobacco.Imperial Tobacco has always been a very good company to deal with. It is meticulous in its operations and is very detailed in its information and reports. I beg Health Promotion Minister Jim Watson to take it seriously. I got the impression that Mr. Watson thought that Imperial Tobacco was making up the numbers.From my own experience, I can say that Imperial’s numbers seem very accurate and its statements true.Maybe Mr. Watson should do his own study and ask convenience-store owners what their tobacco sales declines have been. He could also contact Dave Bryans, president of Ontario’s convenience store association, about the decline in tobacco sales. This is a plight faced by legal tobacco sellers everywhere. We are honest people trying to make an honest living and it is being snatched from us illegally.Please understand that I am not waving a pro-smoking banner. I would be happy if the whole world were able to quit smoking. I am just asking for fairness. Right now, things are pretty lopsided.What, exactly, could the government do with an extra $1.5 billion in tobacco tax revenue anyway?Ontario Blames Illegal Smokes for Drop in Tobacco RevenuesOctober 18, 2006
Josh PringleOntario revenues from tobacco taxes dropped 73.4 million dollars in the past year.Government figures show Ontario pulled in 1.34 billion dollars in tobacco taxes in 2006, down from 1.45 billion in 2005.The Ontario Government says a combination of fewer smokers and more illegal cigarettes for sale contributed to the drop in revenues.Finance Minister Greg Sorbara said that even though more people are quitting the habit, there's no doubt smuggling of cigarettes from other provinces and states, and illegal manufacturing on aboriginal reserves, also siphoned off tobacco tax dollars.
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Ontario Dismisses Tobacco ReportOctober 19, 2006
Josh PringleOntario's Health Promotion Minister is butting out a report on illicit cigarettes in the province by Imperial Tobacco.Jim Watson says statistics showing illegal cigarettes account for 23 per cent of all cigarettes sold in Ontario are suspect and cannot be trustedImperial Tobacco had written Watson complaining that by discounting their statistics, he was "throwing a lifeline to the criminal networks" smuggling cigarettes in Canada.But Watson said the tobacco giant had conducted a survey, not a study, to arrive at its figures on illegal cigarette sales.
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Collateral damage - Illicit tobacco trade takes on phenomenal proportionsBenjamin Kemball President and CEO, Imperial Tobacco CanadaGATINEAU, Oct. 14, 2006 /CNW Telbec/ - "The illicit tobacco trade is taking on phenomenal proportions. The very high taxes on legal products and lack of proper controls over illicit trade are creating considerable collateral damage for legitimate companies and governments alike."Illegal cigarette sales cost governments and legal companies hundreds of millions of dollars in revenues. The uncontrolled sale of products also has negative consequences for government health objectives. Furthermore, illicit tobacco sales pour money into criminal networks that traffic in drugs, alcohol and firearms.This is what Benjamin Kemball, president and CEO of Imperial Tobacco Canada, told the members of the Association des détaillants en alimentation du Québec (ADA), at their convention today in Gatineau.Mr. Kemball based his statements on a study of 2,300 smokers across Canada, conducted this past summer by GfK Research Dynamics. He summarized the study's main findings:- In Canada, during the period covered by the study, 16.5% of weekly cigarette purchases involved illicit sources. But the situation is worse in Ontario and Quebec. In Ontario, illicit sales represent 23.5% of weekly purchases. In Quebec, this figure is slightly over 22%. In other words, nearly one in every four cigarettes smoked in Quebec and Ontario comes from an illicit source.
- 96.9% of the illicit sale of cigarettes is concentrated in Ontario and Quebec.
- At least 95% of the illicit cigarettes identified were manufactured on reserves.
- Illegal cigarettes have become the "number 2 seller" in Quebec and Ontario, well ahead those of many legal manufacturers.
- Illicit tobacco products are purchased not only on reserves--26.2% in Quebec and 45.2% in Ontario. The study shows that 50.6% of these products in Quebec and 29.9% in Ontario are delivered directly to the buyer or obtained through a friend, colleague or relative.Mr. Kemball explained that the current data on declining legal cigarette sales is misleading and does not reflect a corresponding drop in tobacco use, contrary to some claims. In fact, 75% of the reduction in legal sales has been transferred to the illegal market. According to estimates by Imperial Tobacco Canada, current consumption is dropping by only 2% annually."The health objectives targeted by various government policies are being compromised by the increase in illicit trade. Uncontrolled products do not comply with the regulations that apply to health messages, disclosure of ingredients, measurement of toxic emissions and criteria for low ignition propensity."In addition, those who sell illicit tobacco products are not very likely to ask their customers for proof of age, making it very easy for minors to obtain illegal products at very low prices.In light of the rapid, uncontrolled growth of illicit tobacco products, Mr. Kemball appealed to all stakeholders to work together to rectify the situation, or else a major decrease in taxes will be inevitable.He hailed the major efforts being made by Quebec's ministries of Finance and Revenue and by police forces across the country. "But without cooperation and difficult political decisions by governments of Quebec's neighbouring provinces, and in particular the federal government, the problem cannot be resolved."
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RCMP make arrests in black market tobacco ring -NSCTV.ca News 22/09/2006Three people have been arrested after RCMP in Halifax seized more than 1.5 million cigarettes that were allegedly smuggled into Nova Scotia from Quebec.The black market cigarettes appear to have orginated in the United StatesThe massive haul confiscated by police also included a Cadillac, a one-ton truck, a Lincoln Navigator, cash, weapons, cocaine and knock-off clothes, but the cigarettes were the big prize."These cigarettes are being smuggled from Quebec," said RCMP spokesperson Sgt. Frank Skidmore. "They come off of aboriginal reserves in Quebec. They being purchased there and being smuggled into Nova Scotia for sale here."The cigarettes were not in retail cartons, but loosely packed in large boxes. Inside were stickers with a warning from the United States Surgeon General."I don't have a value of the cigarettes themselves, but certainly in lost taxes, you'd be looking into the hundreds of thousands of dollars of lost taxes," said Skidmore.Michael James Nugent, 42, of Hants County Nova Scotia and David Angus Way, 60, from the Halifax area, have been charged under the federal Excise Act. A third man has been arrested but police have not released his name as he has yet to be charged.The arrests follow a 10-month investigation involving the RCMP, Halifax police, the Canadian Border Services Agency and Canada Revenue Agency.Skidmore said he could not reveal the name of the First Nations reserve where police believe the cigarettes originated."There are companies and people and individuals who have the right to buy tax free and mainly more commonly on the aboriginal reserves they can purchase the tobacco," said Skidmore. "They bring the tobacco in from the manufacturer and then it is being resold by black market buyers."Skidmore said the investigation is continuing, and he expects to seize more goods and lay further charges.
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Police Seized nearly 47,500 Cartons of Counterfeited Contraband Cigarettes -ONTORONTO, Sept. 7, 2006 /CNW/ - A joint forces operation involving the Royal Canadian Mounted Police (RCMP) Greater Toronto Area Customs and Excise Section; Canada Border Services Agency (CBSA) Investigations and Intelligence Divisions for the Greater Toronto Area resulted in the seizure of approximately 47,500 cartons of counterfeited contraband Canadian brands of cigarettes, described as Player's Light and Du Maurier, with an approximate total value of more than $3.1 million. Of this amount, an estimated $2.1 million in duties and taxes was evaded at the Federal and Provincial levels.CBSA officers found and seized the counterfeited cigarettes located in a freight container originating from China. As a result of a proactive contraband examination conducted by CBSA Container Examination Facility Division Brampton, Ontario, on August 28th, 2006, a search warrant was executed at Tai Ton Trading, Melford Drive, Scarborough, Ontario. This matter is still under investigation.At this time, the following three men were arrested and charged with unlawful possession of tobacco products contrary to section 32(1) of the Excise Act 2001:
Wei-Hung CHOU, age 35, Scarborough, Ontario, Ju Wen ZHOU, age 31, Scarborough, Ontario, Jia Zhe HE, age 20, Scarborough, Ontario"The distribution of contraband tobacco products in Canada has serious consequences for the Canadian taxpayers," stated Sgt. Terry Brown, A/Officer in Charge of the RCMP Custom and Excise Section. "It results in the loss of government revenue at the provincial and federal levels which subsequently affects the delivery of health care services and educational programs. It also exposes the public to a higher health risk and facilitates young Canadians to obtain tobacco products through the illicit market.""This seizure demonstrates the excellent work CBSA officers perform daily to ensure the safety and protection of those within our communities," stated Patrizia Giolti of Canada Border Services Agency.
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Two men arrested as contraband cigarettes seized -ONSeptember 1, 2006Ontario Provincial Police have arrested two men in Cornwall after finding contraband cigarettes worth more than $432,000 in a trailer their truck was pulling.The men were arrested after OPP pulled over the pickup truck in the eastern Ontario border community at about 2:30 p.m. on Wednesday.Inside the trailer, they found 18,650 resealable bags of white-filtered cigarettes and 1,000 cartons of DK brand cigarettes.The driver of the truck, an 18-year-old man from Akwesasne, Ont., and his 54-year-old male passenger from Hogansburg, N.Y., face charges under the federal Excise Act.
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Cigarette firm suing province, Ottawa over illegal salesJune 10, 2006
The Gazette MONIQUE BEAUDIN'It's been a catastrophe'; Company says governments aren't stopping smokers from buying at aboriginal reservesA Quebec cigarette manufacturer is suing the federal and provincial governments for more than $4.5 million, saying authorities turned a blind eye to illegal cigarette sales that have had a devastating effect on its business."Our sales have dropped significantly. It's been catastrophic," said Denis Paquette of Les Entreprises Steeve Lepine, a discount cigarette and tobacco-products manufacturer in Berthierville, about 85 kilometres northeast of Montreal.Paquette's lawsuit, filed in Quebec Superior Court last month, claims his company's cigarette sales began to decline in the summer of 2002, when the federal and provincial governments hiked cigarette taxes by a total of about $9 a carton.Smokers turned in droves to cheaper cigarettes, many of which were purchased on native reserves where taxes were not charged, Paquette said in an interview yesterday.As a result, he said, his company's revenues plummeted from $3.2 million in 2002 to $362,590 in 2005.The company, which used to employ 15 people, now has only three workers."We lowered our prices, but it made no difference," he said.His cigarettes - sold under such brands as Lepine, Match 1 and Match 2 - sell for about $48 a carton, of which $36.45 is taxes. Smokers can easily find other brands for as little as $12 to $15 from sellers who don't charge provincial or federal taxes, he said. "People sell them on the street," he said."Anyone who wants them can get them."Paquette blames cheap cigarettes coming from aboriginal reserves for his company's dramatic drop in revenues. Native retailers don't have to charge taxes on cigarettes to native buyers.But many non-natives buy cigarettes on reserves to avoid paying the taxes, Paquette said.The lawsuit says manufacturers like Paquette are being discriminated against because they follow the laws and regulations that govern the sale of tobacco and cigarettes.The company also contends the two levels of government were negligent in not cracking down on cigarette retailers on aboriginal reserves who did not charge taxes on their products."Laws must be applied fairly to everyone," Paquette said. "That's what the governments should have done."The lawsuit claims federal inspectors do not visit native reserves and contends the federal government gives permits to businesses that provide only a post office box number.A spokesperson for the federal attorney-general said he could not comment on the lawsuit because it is before the courts.
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Police concerned by resurgence of contraband cigarettesJune 01, 2006
Eric Beauchesne, CanWest News ServiceOTTAWA - The golfer, sipping a beer on the 19th hole of an eastern Ontario golf course, unsealed a plastic sandwich bag and pulled out a cigarette.Asked it they were contraband, he nodded yes, explaining later that at $20 for a carton of 200 cigarettes, the cost was less than a third of what he would have paid in a store, and that as a bonus he gets free home delivery.He also said, jokingly, that he didn't know anyone who still bought cigarettes from stores.His comments help explain a 10 per cent drop in sales of cigarettes this year - according to Statistics Canada - and an even greater decline in production here. They also explain what RCMP officers say has been a massive increase in seizures of contraband cigarettes.''Since 2002, our seizures have increased about tenfold,'' said RCMP superintendent Joe Oliver.''We're looking at potential losses, if you're looking at all taxes, in the hundreds of millions of dollars. It's not cheap.''The drop in licensed production and sales of cigarettes combined with the reported increase in seizures of contraband smokes, bolster tobacco industry claims high taxes don't deter sales but merely drive them underground.''The reality is high taxation policies have resulted in a considerable increase in contraband activity, whether it's product coming from native reservations or whether it's product coming from offshore,'' said Rothmans Inc. spokesman John McDonald.Police and industry spokespersons admit they don't know how large a share of the annual multibillion-dollar cigarette market is contraband. However, they suspect it is back to, or near, levels reached in 1994 when governments in Canada slashed taxes to rein in what police said was an out-of-control black market for cigarettes.Estimates of the share of today's market that's contraband run from 25 to 30 per cent for some parts of the country, McDonald said, adding that it doesn't just hurt government, but also legitimate suppliers, from producers to wholesalers to retailers.Further, there's no control over people selling contraband cigarettes, and they don't care who they sell to, he added.''These guys selling cigarettes out of the trunk of a car don't ask for proof of age,'' McDonald commented.''This is the unintended consequences of high tobacco taxes,'' he said, noting that up to three-quarters of the retail price of cigarettes is tax. ''Yet, the anti-tobacco people ask for even higher taxes.''Rob Cunningham, senior policy analyst with the Canadian Cancer Society, agrees no one knows the extent of contraband sales but suspects it's still a ''small portion'' of what he said is a shrinking market for cigarettes.Federal government surveys show ''very substantial'' declines in the prevalence of smoking, he said. According to those surveys, 20 per cent of Canadians age 15 and over smoke on a daily or occasional bases, which is down from 25 per cent at the start of the decade.The retail price of a carton of cigarettes varies widely from province to province, but has surged to $70 to $90 today from $23 to $59 in the late 1990s. That has widened the price gap with contraband cigarettes, a carton of which sells for anywhere from $20 in parts of Central Canada to as much as $40 in other regions of the country.``From last year to this year, we've seen an increase in seizures of 20 per cent, and we're comparing it to the levels of the early 1990s,'' said Sgt. Michael Harvey, with the RCMP detachment in Cornwall, Ont. That detachment covers a region bordering Quebec and New York state that includes a native reserve and which is viewed as one of the main pipelines for the flow of contraband cigarettes to the rest of Canada.Cigarettes brought in through the region, many of which are actually produced on the U.S. side of the reserve, have shown up as far away as British Columbia and Nova Scotia, Harvey noted.Rothmans, in its latest annual report, blamed high taxes plus a lack of consistent law enforcement for the increase in smuggling and illegal manufacturing of cigarettes.``High taxes, in the absence of the ability and political will to enforce laws and regulations, are a recipe for an escalating problem,'' it warned in its report released earlier this month.Ironically, Cunningham agrees, although he blames a lack of enforcement by U.S. authorities, who he feels should step in to stop shipments of cigarettes to Canada, most of which are being produced illegally south of the border.``They would never tolerate the reverse happening,'' said Cunningham, noting their stated concern about border security.
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Man who sold illegal smokes may go to prison
May 30,2006
SYDNEY — A Sydney man facing nearly 20 years in prison if he can’t pay almost $500,000 in fines for selling illegal cigarettes will appear in provincial court in August to argue against a potential prison sentence.
Michael John (Junior) Basque, 28, was fined $458,800 after RCMP officers raided his Howe Street home in November and found 730,000 cigarettes not properly marked as having had duty paid on them.
Mr. Basque pleaded guilty to possession of illegal tobacco for the purpose of trafficking and was fined $342,000 under the provincial Revenue Act and $116,800 under the federal Excise Act.
The court can impose a one-day jail sentence for every $65 of a fine not paid, so Mr. Basque could be facing nearly 20 years in prison should he not pay any of his fine.
Judge David Ryan will hear arguments Aug. 28 on reducing Mr. Basque’s potential prison sentence.
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Contraband smokes killing business: cigarette factory ownerMay 15 2006A flood of contraband smokes from the U.S. has caused a 20-per-cent slump in sales for an aboriginal cigarette factory owner, who says he can't compete with prices that are up to $50 cheaper a carton.Steve Williams, the owner of Grand River Enterprises, said he's been forced to lay off 80 people from his Brantford factory, which manufactures 8,000 cigarettes a minute for export and sale at other First Nation communities.Williams said he's particularly angry because, unlike the illegal sellers, he paid $120 million in excise tax to Ottawa last year. He said he's made several complaints to police but to no avail."We've sent letters to the prime minister. We've sent letters to the solicitor generals, to the attorney generals, and everybody comes back and says we'll pass this on to the RCMP, and that's all we ever get," Williams said.Williams said he can't compete with the cheaper cigarettes coming from factories across the border. A carton of illegal cigarettes costs $20, compared with $70 for ones with a tax stamp.FROM MAY 5, 2006: Cigarette smuggling on the rise, Mounties say
The RCMP say they're making record seizures of contraband cigarettes, but almost all have been off reserves. Last year, police confiscated 100,000 more cases of butts than in 1994, when they started keeping statistics. Seizures are up 20 per cent over the same period last year.However, Williams said, retailers on his reserve have been told by their suppliers that if their illegal products are seized by police, they'll be replaced at no cost."They're shipping to every First Nation in Ontario. They're going into B.C., Saskatchewan. They're all over the place and the governments don't seem to really care or try to stop it," Williams said. "We've estimated the government has probably lost a billion dollars in excise tax."The last RCMP raids in Brantford took place in January 2005. No charges were laid. Instead, offenders were ordered to pay the taxes owed.The illegal sellers who are the target of William's anger and frustration say they're simply conducting business as permitted. As aboriginals, they say, they're exempt from Canadian taxes."We have the right to do what we want in our own country," one cigarette smuggler told CBC Radio. "That's just our right. That's the way it is."The smuggler, known as Falling Leaves, is currently working to help pay off a $31,000 fine imposed on a relative who was caught smuggling."He's got a year to do it and we've got to kick in and help him, otherwise he's going to jail," Falling Leaves said.Asked whether his relative's fine would stop him from selling cigarettes illegally, Falling Leaves answered: "No. I'm not scared. It's our right. It's our born right."
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Smokes smuggler faces $458,000 fine or big jail time
May 2,2006
By TERA CAMUS Cape Breton Bureau
SYDNEY A Sydney man is facing nearly 20 years in prison if he can’t come up with almost half a million dollars to pay his fines for peddling illegal cigarettes.
In what’s believed to be an unprecedented penalty, Michael John (Junior) Basque, 28, of Howe Street was fined $458,800 in Sydney provincial court Monday.
He was fined $342,000 under the provincial Revenue Act and $116,800 under the federal Excise Act after pleading guilty to possession of illegal tobacco for the purpose of trafficking.
RCMP narcotics officers found 730,000 individual store-quality cigarettes either wrapped in plastic bags or in cartons when they raided his home in mid-November. The smokes were not properly marked as having had duty paid on them.
Charges were also laid against co-accused Richard Denny but were later dropped.
Crown attorney David Iannetti told the court Monday the smokes were illegally purchased from a First Nations reserve in Quebec, and there were no records of Mr. Basque having paid the tax to the Nova Scotia or federal governments.
Now the court has to decide how much jail time Mr. Basque’s hefty fine is worth if he fails to pay.
Under the existing formula, the court imposes a one-day jail sentence for every $65 of a fine not paid. Should Mr. Basque not pay any of his total fine of $458,800, court officials say he could be looking at nearly 20 years in prison.
Officials said Monday they can’t recall the last time such a steep mandatory fine was imposed locally.
Judge David Ryan set May 29 as the day he will hear arguments on reducing Mr. Basque’s potential prison time should he not pay his fine.
Joint-forces operation seizes 29,700 cartons of illegal cigarettes with street value of almost $2 million -ON
By LISA LISLE, TORONTO SUN Sat, November 5, 2005
Smugglers smoked
Cops and customs officers are trying to butt out a new trend in smuggling.
Contraband cigarettes from China are hitting the streets of Toronto in a big way, with cops seizing almost 30,000 cartons -- about 6 million cigarettes -- last month.
A joint-forces operation involving the RCMP, CN Police and Canada Border Services Agency officers in both Toronto and Vancouver netted 29,700 cartons of American and Chinese brands of cigarettes with a street value of almost $2 million.
CBSA in Vancouver first spotted the loot and tipped off the cops, who followed the shipment to Toronto on Oct. 19.
When it arrived, RCMP Staff-Sgt. John Morton said a tractor-trailer picked it up and met up with two rental trucks on Nantucket Blvd. in Scarborough. When the smokes were being unloaded, police moved in.
It's the third major bust involving Chinese cigarettes in about six months and police were spotting the contraband on the streets a year before that. "We didn't know at that time what kind of volume we were dealing with," Morton said, adding that smuggling of domestic cigarettes is almost a thing of the past.
Last month's shipment translated into the loss of $1.3 million in federal and provincial taxes.
Charged with unlawful possession of tobacco products under the Excise Act are Chau-Yuk To, 24, and Lung-Ki A. Chan, 43, both of Toronto, Armando Chu, 23, of Richmond Hill, and Augustine Kar Chun Kwok, 26, of Unionville.
RCMP seizes smuggled cigarettes
Canadian Press
Friday, November 04, 2005
TORONTOÂ -- RCMP in Toronto have seized almost 30,000 cartons of cigarettes they say were smuggled from China.
Border inspectors in Vancouver discovered the Chinese and American brand cigarettes in a freight container during a random search.
RCMP Staff Sgt. John Morton says investigators tracked the container to Toronto before seizing the cigarettes on Oct. 19 on board a tractor-trailer.
Four Toronto-area men were arrested and charged with unlawful possession of tobacco products.
Investigators estimate the scheme evaded $1.3 million in duties and taxes.